Freddie Mac posted net income of $3 billion for the second quarter of 2012, up from $577 million in the first quarter.
The income boost came as the firm saw its provision for credit losses decline by $1.7 billion.
Freddie Mac paid $1.8 billion in dividends to the Treasury for the period. Once subtracting that sum, Freddie earned approximately $1.2 billion for the period. Since entering conservatorship in 2008, the GSE has paid $20.1 billion in quarterly cash dividends to the Treasury, a spokesman for the company said.
In addition, delinquency rates on mortgages remained below typical industry benchmarks with the single-family delinquency rate hitting 3.45% in June and the multifamily delinquency rate hitting 0.27% the same month.
The government-sponsored enterprise said its income of $2.9 billion was enough to sufficiently cover a $1.8 billion dividend on 10% preferred stock. The firm did not have to draw on the Treasury during the second quarter and maintains a net worth of $1.1 billion.
Freddie said since January of 2009, it has helped 5.2 million borrowers refinance their mortgages and 700,000 were saved from foreclosure.
The GSE said the portion of its business that is higher-quality, post-2008 underwriting standards grew to 57% of its single-family credit guarantee portfolio in 2Q.
“Our work continued during this quarter, as we helped over 350,000 families take advantage of historically low interest rates and an additional 40,000 avoid foreclosure,” added Freddie Mac CEO Donald H. Layton. “At the same time, our financial results enabled us to avoid an additional draw from the U.S. Treasury, despite paying a $1.8 billion cash dividend to the nation’s taxpayers.”
